Calgary, Alberta – May 28, 2015: CEMATRIX Corporation (TSXV: CVX) (the “Corporation” or the “Company” or “CEMATRIX”) announces the release of its consolidated financial results for the quarter ended March 31, 2015.
First Quarter Highlights
CEMATRIX achieved record first quarter sales of $2,819,022, up from $260,960 for the same period last year. The first quarter is normally considered the offseason for the Company. Sales in the first quarter of 2015 benefitted from winter infrastructure projects carried over from 2014 and the start of a major project in the oil and gas sector in Western Canada, which had also originally been slated to commence in the fall of 2014.
- The increase in sales resulted in a positive gross margin on sales of $638,712 or 23% in the first quarter of 2015 as compared to a negative gross margin of $234,928 for the same period of 2014. The gross margin percentage in the first quarter of 2014 was negatively affected by winter construction costs, client changes to planned production plans and schedules and lower introductory pricing on certain projects. These conditions are not forecast to continue through the remainder of 2015.
- The Company’s total contracted work for 2015 and 2016 has increased to $11.1 million, up from $9.9 million reported in March, $1.0 million of which relates to 2016. This compares to a total of $4.3 million at the same time last year.
- The Company, through a wholly owned subsidiary, Cematrix (Canada) Inc., put in place a working capital financing arrangement with Tallinn Capital Corp for up to $2,000,000 (“Tallinn Financing”), a portion of which was used to repay a credit line with a Canadian chartered bank.
First Quarter Results
Selected financial information for the quarters ended March 31, 2015 and 2014 is as follows:
The outlook for 2015 remains positive – the Tallinn Financing will provide the necessary funding to finance sales growth; two new production units will be commissioned in the next month which will increase the annual production capacity by up to 60%; and management is still forecasting continued growth in Canadian infrastructure sales, growth in U.S. infrastructure sales and significant sales in the oil and gas sector on projects that are already underway.
This press release should be read in conjunction with the Corporation’s unaudited Consolidated Financial Statements and Management Discussion and Analysis for the quarter ended March 31, 2015, both of which can be found on SEDAR.
CEMATRIX is an Alberta corporation with its head offices in Calgary, Alberta. The Corporation, through its wholly owned subsidiary, is a manufacturer and supplier of technologically advanced cellular concrete products with applications in a variety of markets, including oil and gas construction and infrastructure construction. Cellular concrete provides a cost and labour saving solution as a replacement for rigid and other insulating materials in frost-susceptible or permafrost conditions. Cellular concrete is also used in void filling situations and as a replacement for granular fills and weak or unstable soils.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information, please contact:
Jeff Kendrick – President and Chief Executive Officer
Phone: (403) 219-0484
Forward-looking information: This news release contains certain information that is forward looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as “anticipate”, expect”, “would’ or other similar words). Forward looking statements in this document are intended to provide CEMATRIX security holders and potential investors with information regarding CEMATRIX and its subsidiaries’ future financial and operations plans and outlook. All forward looking statements reflect CEMATRIX’s beliefs and assumptions based on information available at the time the statements were made. Readers are cautioned not to place undue reliance on this forward looking information. CEMATRIX undertakes no obligation to update or revise forward looking information except as required by law. For additional information on the assumptions made and the risks and uncertainties which may cause actual results to differ from the anticipated results, refer the CEMATRIX’s Management Discussion and Analysis dated August 6, 2014 under CEMATRIX’s profile on SEDAR at www.sedar.com and other reports filed by CEMATRIX with Canadian securities